Justice Department had walked back controversial plan after meeting backlash from lawmakers and lawsuits.

A federal judge in the United States has indefinitely blocked the Trump administration from moving forward with plans for a $1.8bn “anti-weaponisation” fund, meant to offer payments to those who experienced alleged “lawfare” and “weaponisation” of the government.

The ruling on Friday represents another setback for the scheme, which has faced heavy resistance from lawmakers and has been walked back by the Department of Justice previously.

Judge Leonie Brinkema of the US District Court for the Eastern District of Virginia had issued a temporary halt to the fund last week and issued a preliminary injunction as it was set to expire on Friday.

The fund was the product of a settlement between Trump and the Justice Department of a $10bn lawsuit the president had brought against the Internal Revenue Service (IRS).

The Justice Department set up a $1.776bn fund that would have been helmed by a five-member commission to distribute funds to those they deemed victims of “weaponisation”, a term that Trump has used to describe investigations and criminal cases into himself and his allies.

Attorney General Todd Blanche walked back the plans earlier this month amid growing criticism, and government attorneys have argued that lawsuits challenging the scheme are now irrelevant.

Even before the administration announced it was dropping the fund, the Justice Department did not form the five-member commission to decide on payout criteria, so no money was paid out or claims accepted.

Many of the Republican president’s allies are opposed to compensating rioters who stormed the US Capitol on January 6, 2021. In May, however, Blanche would not rule out the possibility that Capitol rioters who engaged in violence could be eligible to apply for payments from the fund.

Trump issued mass pardons to Capitol rioters on his first day back in the White House last year. More than 1,500 people were charged in the January 6 attack before Trump erased every case with his sweeping act of clemency.

Plaintiffs who sued to block the plan argued that the scheme diverted taxpayer funds into what was essentially a slush fund and have expressed doubt about Blanche’s assurances that the fund will not move forward.

While the administration has moved away from the scheme, Trump himself has not endorsed its cancellation and has continued to discuss it positively in comments to the press.